In Massachusetts, Brown says, everyone has
gotten aggressive again. “We have a lot of
regional and national banks active in lending.
One regional banker told me he is competing
for deals with the national banks and insurance
companies in the $5 to $15 million range. The
clients he looks at are the same ones that Wells
Fargo, Bank of America, and life companies
are looking at. “Everyone is as competitive as
possible,” Brown says.
He is putting together a financing with a
community bank on a 10-year loan at 4. 5
percent, but it adjusts after five years. “The
community banks for the past few years are
really only giving a fixed-rate for five years
where the regional and national banks and life
companies will go out 10 years,” he says.
Still, Brown hasn’t done a life company deal in
a “long, long time.”
All the lenders are back in the game, throwing
a lot of money at deals, exclaims Kitchen. The
debt market has gotten so competitive, one can
now find forward deals, non-recourse bank
loans, interest-only loans, and take-outs. There
are even aggregations for bigger plays.
“Credit unions have been getting together as a
collective,” says Kitchen. “A mortgage broker
would underwrite a deal and then syndicate to
20 credit unions. About a year ago, we did a $3
million medical office building that way. The
cap rate was about 8. 5 percent.”
Is there anyone who can’t get a commercial real
estate loan these days?